Luxembourg As a Knowledge Capital and Testing Ground for the Circular Economy

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Luxembourg As a Knowledge Capital and Testing Ground for the Circular Economy LUXEMBOURG AS A KNOWLEDGE CAPITAL AND TESTING GROUND FOR THE CIRCULAR ECONOMY NATIONAL ROADMAP TO POSITIVE IMPACTS Tradition, Transition, Transformation December 18, 2014 Colophon Title LUXEMBOURG AS A KNOWLEDGE CAPITAL AND TESTING GROUND FOR THE CIRCULAR ECONOMY. National Roadmap for Positive Impacts. Tradition, Transition, Transformation. Prepared for Ministry of the Economy Grand Duchy of Luxembourg Prepared by EPEA Internationale Umweltforschung GmbH in association with Returnity Partners Authors Katja Hansen Douglas Mulhall, Coordinator Markus Zils Researchers Tom Koch, Lars Luscuere Thanks also to Sarah Saffnauer. Reviewer Michael Braungart Study Steering Committee Members Marcel Klesen Marguy Kohnen Romain Poulles Paul Rasqué Paul Schosseler Christian Tock Steering Committee Advisor Guido Braam, Circle Economy December 2014 ©EPEA Internationale Umweltforschung GmbH II About the title Luxembourg due to its diversity, size, and positioning is a powerful testing ground for circular economy methods. It has the knowledge and know-how to initiate and implement a successful circular economy. To achieve positive impacts, the study balances three overlapping spheres of progress; Tradition, Transition and Transformation, so stakeholders benefit from a win-win scenario. Acknowledgements The authors would like to express their appreciation to the members of the Study Steering Committee who devoted considerable time to support the study especially making contacts for interviews but also providing valuable insights. Appreciation is also expressed to the many interviewees who participated in the study; Anne-Christine Ayed, Fernand Becker, Frans Beckers, Stephen Beckers, Ernest Boever, Guido Braam, Jean Braun, Diego de Biasio, Xavier Delposen, Marc Demoulling, Gérard Eischen, Tom Eischen, Laurent Federspiel, Pol Gantenbein, Gilles Gardula, Atilio Germano, Jacque Gilbert, Charles Gosselin, Mario Grotz, Carlo Guetti, Melanie Guiton, Jacques Hoffman, Thomas Hoffmann, Lucien Hoffmann, Laurent Jossart, Marcel Klesen, Marguy Kohnen, Marko Körner, Alain Krecké, Tom Majeres, Bernard Mottet, Joost Ortjens, Giacomo Piovan, Romain Poulles, Paul Rasqué, Christian Rech, Sameer Rege, Bruno Renders, André Schanck, Claude Schettgen, Robert Schmit, Laurent Schonckert, Paul Schosseler, Jeannot Schroeder, Klaus Schu, Hjoerdjis Stahl , Claude Steinmetz, Georges Thielen, François Thiry, Christian Tock, Valérie Toniazzo, Daniele Waldmann, Hans-Peter Walter, Christiane Wickler, Patrick Wies, Tom Wirion, Ronny Wolff, Gerard Zoller. Prior to publishing the study, some quotes of interviewees will have to be approved by them although most gave permission during interviews. | III Contents Colophon ...................................................................................................... II Contents ...................................................................................................... IV Figures ........................................................................................................XII Tables ....................................................................................................... XVII Glossary ................................................................................................. XVIII List of Acronyms .................................................................................... XXI Where to Find What in the Study ................................................... XXII STUDY HIGHLIGHTS .................................................................................. 1 The main messages............................................................................................................ 4 Introduction ......................................................................................................................... 7 The Size of the Prize .......................................................................................................... 8 Estimating Circularity Benefits for Luxembourg .................................................. 9 Defining Circularity ......................................................................................................... 14 The Present Situation in Luxembourg ..................................................................... 26 S.W.O.T. Summary ............................................................................................................ 34 The Near-Term Potential Summarized ................................................................... 36 Potential Visionary Mission for Luxembourg ....................................................... 39 Strategic Policies to Achieve the Mission and Objectives ................................ 44 A Core Strategy for Integrating Circularity into Government Policies .................................................................................................................................. 45 Sectorial Strategies .......................................................................................................... 47 Regional Strategy ............................................................................................................. 49 Enabling Strategies .......................................................................................................... 52 Potential Role for the Government of Luxembourg ........................................... 57 Potential Implementation Structure ........................................................................ 57 IV | SECTION I OVERVIEWS ........................................................................................... 60 1. WHY DO IT? ............................................................................................... 61 2. CONTEXT, TERMS OF REFERENCE, STUDY APPROACH .............. 65 2.1. Context. Why Is National Alignment On Circularity A Priority? ................... 65 2.2. Terms Of Reference & Study Approach In Brief .................................................. 72 3. THE CIRCULAR ECONOMY & COMPARING THE MODELS ........... 74 3.1. Context For Circularity................................................................................................... 76 3.1.1. Where circularity and sustainability meet ............................................................................ 79 3.1.2. Practical significance for Luxembourg of circularity compared to sustainability....................................................................................................................................... 82 3.1.3. Who is defining circular economy? ........................................................................................... 83 3.2. Definitions Of Circular Economy In The Literature ........................................... 85 3.2.1. The cradle to cradle design protocol ........................................................................................ 86 3.2.2. EC and EU circularity definitions ............................................................................................... 90 3.3. Science Meets Circularity .............................................................................................. 92 3.3.1. The circular economy is usually not circular ....................................................................... 92 3.3.2. Continuous spheres and cascades are innovation platforms ........................................ 93 3.3.3. Circular materials are defined by their use, not whether they come from biological or non-biological sources. ........................................................................................ 94 3.3.4. Quality vs. quantity. ......................................................................................................................... 95 3.3.5. Product design affects circular economics. ........................................................................... 95 3.3.6. Bionutrients dispersed into the environment are significant economic resources .............................................................................................................................................. 97 3.3.7. The role of the Technosphere in energy generation is greatly under- emphasized .......................................................................................................................................... 98 3.4. Qualified Definition Of Circular Economy .............................................................. 98 3.5. How Luxembourg Might Benefit From Earlier Circularity Studies .......... 101 4. RAISING INDUSTRY COMPETITIVENESS AND JOB CREATION IN LUXEMBOURG TO STRENGTHEN ECONOMIC DIVERSITY .........................................................................102 4.1. Purpose And Context For Estimates On Industry Competitiveness And Job Creation ............................................................................................................ 103 | V 4.2. Takeaways ........................................................................................................................ 103 4.3. Savings From Circularity ............................................................................................ 105 4.3.1. Opportunity assessment and indicative, rough estimates of accelerating transition towards a circular economy ................................................................................. 105 4.3.2. Overall economic impact of reduced net-material cost savings ................................ 108 4.4. Employment And Circularity ...................................................................................
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